Over the past seven years, New Jersey has seen a significant decline in the number of Fortune 500 companies headquartered in the state, according to Michele Siekerka, President & CEO of the New Jersey Business & Industry Association (NJBIA). In an interview with NJ Spotlight News anchor Briana Vannozzi on October 20, Siekerka discussed the organization's newly released "Blueprint for a Competitive New Jersey," a 28-page policy document aimed at guiding the next governor on economic growth and innovation.
“Seven years ago, we had 21 Fortune 500 companies in this state; today we have 15,” Siekerka said. The state's current economic policies and affordability issues “continue to drive business out of the state, and with that goes money.”
Siekerka highlighted that over the past 15 years, $33 billion in adjusted gross income has left New Jersey. She explained that this outflow of wealth affects both tax revenues and the state budget. “Think about if we had that $33 billion in our operating budget. What a better place we would be in.”
With the gubernatorial election approaching on November 4 and a new administration set to take office in January, Siekerka emphasized the urgency for the incoming governor to address the state’s fiscal challenges. She noted that the state budget has grown rapidly in recent years, reaching a level she described as unsustainable.
“What do we need to do? We need to grow the economy,” Siekerka said. “Who grows the economy? Job creators.”
Siekerka pointed to New Jersey’s corporate business tax rate, which was recently raised to 11.5%, the highest in the country, as a factor undermining the state’s competitiveness. She contrasted this with Pennsylvania, which is reducing its corporate tax rate to 5% over the next five years and attracting new investment, including artificial intelligence data centers.
"Right now, Pennsylvania is eating our lunch on corporate business tax. They're also getting all the AI play," Siekerka said, referencing the economic benefits Pennsylvania is experiencing from these developments.
"If we look at that corporate business tax and start driving that down, with guardrails, a percentage a year over five years, maybe we can compete,” Siekerka said.
“I mean, we've got significant challenges in this state that we need to pay attention to, and we need to do it on Day One of a new administration,” Siekerka said.
The full NJ Spotlight News interview with Michele Siekerka can be viewed online.
